What must a mutual fund do before the ex-dividend date?

Before the ex-dividend date, a mutual fund must declare a dividend. This declaration is a formal announcement that the mutual fund will be distributing a certain amount of income to its shareholders. By declaring the dividend prior to the ex-dividend date, the mutual fund ensures that investors are aware of their entitlement to the upcoming dividend payment. This is crucial because it sets the timeline for when shareholders can expect to receive the dividend and clarifies which investors will be eligible to receive the dividend based on their ownership of shares on or before the ex-dividend date.

The other choices relate to different aspects of mutual fund operations that do not directly pertain to the dividend announcement. Determining the NAV (Net Asset Value), for instance, is crucial for pricing transactions but does not specifically involve dividend declarations. Completing the offering of shares and establishing a registration process are also regulatory and operational tasks that occur independently of the dividend announcement process.